US ban on Chinese cars and tech advanced in final days of Biden administration

The Biden administration has been talking about banning Chinese EVs and certain technologies for quite some time, citing security risks, and now the legislation is much closer to reality. The Department of Commerce has just finalized the rule, which states that importing and selling certain connected vehicles and related systems will soon become prohibited. There are some nuances here, though.

For instance, the rule talks about hardware and software technologies. Cars using VCS (vehicle connectivity systems) and ADS (automated driving systems) software and hardware manufactured in China or Russia will soon be banned. The ban on software will go into effect for the 2027 model year, while the hardware will be banned starting the 2030 model year.

This includes hardware equipment related to Bluetooth, cellular, satellite and Wi-Fi connectivity designed, developed and manufactured in China and Russia. Domestic manufacturers won't be able to use that hardware either, which will likely create a cascade of other issues. This will go into effect for the 2027 model year.

The US is concerned that entities related to the PRC are conducting nationwide surveillance and espionage on critical government infrastructure using geolocation data, audio and video recordings, and other pattern-of-life analysis.

For now, the ban concerns only passenger vehicles, but the government is looking into commercial vehicles as well. US car manufacturers have some leeway until 2027-2030 to adapt.

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